Fannie Mae (FNMA)

[YanksGhost]

The worst was Mnuchin saying GOV deserved the $300 B extracted, to date, and further stated that a simple recap and release was off the table.

Then Mnuch stated that any guarantee or taxpayer provided backstop/LOC would also require further payment, including the specifically mentioned contingent fees (which have been waived during conservatorship).

Then Calabria answered a question about Duty to Serve and suspended housing fees during conservatorship and stated they would all be paid if the GSEs are allowed to retain earnings in a renegotiated SPSA.

This all means WAY less retained earnings for recap than most of us expected.

Mnuchin and Calabria both waffled on SIFI and utility reform measures that left me very unsettled on their intent.

I was hoping SM would be a good foil for MC's concerning affinity for TBTF and "wind down" over many think tank years. Now I fear the two may more be in cahoots. Both of their comments on Wall Street and IPO arrangements seemed way too cozy for me.